Is the Cloud Overhyped? Predicted Savings Hard to Verify

October 8, 2012

One of the most attractive benefits of cloud computing can also be one of the hardest to prove: cost savings.

Agencies often lack the details needed to compare their pre-cloud costs — for hardware, software, labor and the like — with cloud-computing fees.

“It’s kind of a shaky premise to say we are moving to the cloud and going to save all this money, and they [organizations] don’t have a sense of what they’re spending today and how much they will save,” said Ed Anderson, a research director at Gartner whose focus is the cloud computing market. “I see a big danger in that because cost savings is the No. 1 justification for moving to cloud.”

 

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